Joey St-Aubin has been the CEO of Canlan Ice Sports Corp. (TSE:ICE) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Joey St-Aubin Compare With Other Companies In The Industry?
According to our data, Canlan Ice Sports Corp. has a market capitalization of CA$49m, and paid its CEO total annual compensation worth CA$364k over the year to December 2019. That's a slightly lower by 3.5% over the previous year. Notably, the salary which is CA$325.9k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below CA$263m, we found that the median total CEO compensation was CA$485k. So it looks like Canlan Ice Sports compensates Joey St-Aubin in line with the median for the industry.
On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. Canlan Ice Sports pays out 90% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Canlan Ice Sports Corp.'s Growth
Over the last three years, Canlan Ice Sports Corp. has shrunk its earnings per share by 44% per year. In the last year, its revenue is down 28%.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Canlan Ice Sports Corp. Been A Good Investment?
With a three year total loss of 0.2% for the shareholders, Canlan Ice Sports Corp. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Joey is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Canlan Ice Sports (1 is a bit unpleasant!) that you should be aware of before investing here.
Switching gears from Canlan Ice Sports, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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